German intelligence officials appear to be dismissing Washington’s warning that it will limit security cooperation with Berlin if China’s Huawei Telecommunications is allowed to build Germany’s 5G network. The company, Huawei Technologies, is a private Chinese venture and one of the world’s leading telecommunications hardware manufacturers. In recent years, however, it has come under scrutiny by some Western intelligence agencies, who view it as being too close to the Communist Party of China. More recently, Washington has intensified an international campaign to limit Huawei’s ability to build the infrastructure for 5G, the world’s next-generation wireless network. Along with Britain, Australia and Canada, the US is concerned that the Chinese telecommunications giant may facilitate global wiretapping on behalf of Beijing’s spy agencies.

In the past several months the United States has repeatedly warned Germany that intelligence sharing between the two countries will be threatened if the Chinese telecommunications giant is awarded a 5G contract by the German government. In March, Washington informed German officials that intelligence cooperation between the two allies would be severely impacted if Chinese telecommunications manufacturers were given the green light to build Germany’s 5G infrastructure. The warning was allegedly included in a letter to Peter Altmaier, Germany’s Minister of Economic Affairs and Energy, written by Ambassador Richard Grenell, America’s top diplomat in Germany. The letter urged the German government to consider rival bids by companies belonging to American allies, such as the Swedish telecommunications equipment manufacturer Ericsson, Finland’s Nokia Corporation, or the South Korean Samsung Corporation.

But a report by Bloomberg on Wednesday said that German authorities were not convinced by Grenell’s argument. Citing “four people with knowledge on the matter”, the news agency said that Germany’s intelligence community see Washington’s warnings as “political grandstanding”. The US and Germany “need each other’s resources to tackle global conflicts” and “rely on each other too much to risk jeopardizing crucial data sharing”, said the report. The anonymous officials told Bloomberg that Germany does benefit from America’s “vast array” of intelligence. However, German spy agencies also provide their American counterparts with crucial intelligence from several regions of the world, they said. The US Department of State did not comment on the Bloomberg report. The Chinese government has repeatedly dismissed allegations that Huawei poses an espionage threat to Western nations.